MTM Options Trader Newsletter - Should You Adjust the Trade or Move On?

[image](=) [image] This Week in the Market After testing the most recent highs set back in February, the S&P 500 cooled off and closed lower on Friday. However, it did manage to gain positive ground for the week. Nasdaq remains especially volatile as the index closed near breakeven. The market survived the notes from the last Federal Reserve meeting without a big move in either direction. Implied volatility levels and option prices continued to move lower from the previous week. As has been the case, it makes sense to maintain a non-bearish bias on the market until major support levels have been broken. Even though IV levels keep falling, for many stocks they will rise as quarterly earnings dates approach. Tesla is one of the big names expected to announce this week with many more to come soon. As far as economic reports go, it is a slower week compared with the past few. Only a handful are worth noting, including a couple of housing reports. As always, be cognizant of the expected earnings date before taking any trade. Have a healthy, safe and prosperous week! Apr 18: Housing Starts Apr 19: Beige Book Apr 20: Jobless Claims Apr 20: Existing Home Sales Apr 20: Leading Economic Indicators [Read Our Blog]( Should You Adjust the Trade or Move On? Here is another short post on something I feel strongly about. I bring it up now is because I have had back-to-back discussions about the topic with one-on-one coaching students recently. Both of them asked, “If you have a losing trade but it looks like a good setup again, should you take it?” Of course, when you word it this way, a good or even a great setup should always be considered. But I like to tell traders to think of the adjustment as a brand-new trade…because it is. You are most likely closing out a losing position and looking to enter another one. Fair enough. But if you look at the [Continue Reading ...]( MTM Watchlist Here are a few trade ideas we will most likely look at in group coaching class this week: SPY – With volatility rampant and IV skews prominent, more double calendars will be explored following another successful round of them last week. BA – After a huge gap down on Friday, a profitable bull put spread was modeled out. This week bull call spreads will be examined with the 50-day moving average as the first target. GLD – After moving lower on Friday, GLD is still in a major uptrend. We will consider bull call spreads and directional call calendars this week. [image]() The strategies in this newsletter are for educational and informative purposes only. All information disclosed in this newsletter should not be considered complete in its entirety. Market Taker Mentoring, Inc. will not be held responsible for changes, oversights, errors or omissions. Dates, prices, news and other information may not be accurate. Please verify all information before trading. You alone are responsible for your own investment decisions. Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD), which can be obtained from your broker; by emailing investorservices@theocc .com; or from The Options Clearing Corp., 125 S. Franklin St., Suite 1200, Chicago, IL 60606. No statement in this newsletter is intended to be a recommendation or solicitation to buy or sell any security or to provide investment or trading advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Copyright Market Taker Mentoring, Inc. 2008 - 2023. All rights reserved. Reproducing or redistributing this content is a violation of federal law. [image] If you do not wish to be contacted via email, you can unsubscribe using this link: [Unsubscribe]( Unsubscribing from email notifications DOES NOT cancel your class, subscription or recurring payments. We recommend that current students do not unsubscribe from email notifications. If you unsubscribe from email notifications, you will not be notified on how to access the classes or subscriptions in which you are enrolled. Market Taker Mentoring, Inc. PO Box 117 Frankfort, Illinois 60423 United States